Similar to the US deal announced in July 2016, the collaboration will allow users of PayPal and Visa cards to choose either mode of payment, the companies announced. Previously, PayPal had sparred for years with credit-card firms for control over online and in-store transactions.
While saying it’s too early to quantify a boost from the US deal on transactions, PayPal is “encouraged” by the increasing usage frequency and reduction of complaints from customers, according to the company.
More than that, the two companies said in a statement that the partnership makes it easier for Visa-issuing banks in the Asia-Pacific region to offer cardholders the ability to make payments anywhere PayPal is accepted online, and it also expands the use of PayPal to retailers that accept Visa in physical locations.
The payment firm last year shifted its strategy to become a global digital platform that works with banks, card issuers and ecommerce companies including Alibaba. Such deals are aimed at building loyalty among its about 200 million users and adding to that base in Asia, described as a “card-oriented market."
PayPal expects to roll out the deal with Visa in other parts of the world, but hasn’t decided where after Asia. The company’s agreement with MasterCard in the US, may also be extended into other parts of the world, claims the company.
PayPal is also looking to increase usage of digital payments in developing Asian markets such as India and Indonesia, where most of the population does not have access to banking services but are active cell-phone users. About a third of PayPal transactions are from mobiles.
The company does not provide a regional breakdown, but says international revenue accounts for 54 percent of its annual income, reports Bloomberg.
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